"Chief executive Glenn Rufrano told a media briefing late on Tuesday night that directors faced a stark choice between either receivership or saving the company in a debt for equity swap.
The refinancing announced today covers $7 billion in debt including the $5.05 billion owed by Centro Properties and the $1.96 billion owed by the joint venture with Centro Retail Trust called Super LLC.
In relation to Centro Properties the banks will convert $1 billion in debt into hybrid securities with a maturity of seven years. These are convertible in seven years with all interest payable on them capitalised.
Rufrano said this was a good deal for the shareholders because the debt for equity conversion was priced at 13 to 14 cents a share, a significant premium to the last traded price of 6.8 cents a share."
